Programmatic Marketing Explained P1
Programmatic marketing is widely touted to be digital advertising’s future. But how is it defined and what opportunities does it offer? Programmatic marketing is viewed as the future of online advertising, with Google targeting 60% of total digital advertising budgets being spent next year on Programmatic. Forrester reports that over the next couple of years that programmatic will account for most digital advertising spending. The only thing that stands in the way of that changing is the lack of knowledge that marketers have of the process and them being reluctant to give up their current ways of buying ads in favor of a process that is complex yet a highly effective automated, instant bidding process that programmatic marketing uses. A small amount of knowledge goes a very long way, so that is why we wanted to introduce the programmatic marketing concept since we thought it would be helpful for digital marketers. However, what exactly is programmatic digital marketing anyway? In this article, we will be covering just a few of the potential opportunities and benefits that programmatic programming offers.
New York City Programmatic Digital Marketing Forecasts
The report from Magna Global Programmatic Intelligence provides forecasts for programmatic from 2014 to 2019 by format. It is estimated that by 2019 programmatic will be 50% of total advertising, which represents significant growth, even though it is less than what is estimated by Forrester.
New York City Programmatic Marketing Defined
Since programmatic marketing involves auctions that are milliseconds long via algorithms throughout page loading time, at first glance it can seem like a very confusing concept. However, when boiled down into its simple form it is actually quite simple.
Programmatic Marketing can be defined as:
- Automated bidding in real time on advertising inventory, for the chance to show an advertisement in a specific context, to a specific customer.
- Programmatic Advertising or marketing is a general term. Therefore it is best to divide it up based on whether or not Real-Time Bidding (RTB) is involved.
How Programmatic Marketing In NYC Works
Whenever anybody clicks onto a web page with advertising space that has been configured to use with programmatic advertising, the page’s publisher places an ad impression for auction in an advertising marketplace. Then the ad marketplace runs an auction for advertisers who are interested in their ad is displayed to the specific customer who has clicked on that page. In this auction, there can be numerous advertisers competing, and whichever one is willing to ultimately bid the most will win the auction and the customer will be shown their ad once the page loads. Since it is an automated process and the maximum priced that every advertiser is willing to bid on the impression has been programmed in already, it is possible to complete the auction within the milliseconds that it takes for a web page to load.
NYC Programmatic Marketing Advantages
A number of different opportunities are opened up by programmatic marketing, which wouldn’t be possible if there was manual and placement like in the past. This enables advertisers to obtain digital media without needing to pre-negotiate the price so that they only pay for relevant ad impressions that are actually received. Also, they can sign up with a minimum budget or minimum amount of impressions, which is why digital advertising is a lot more flexible. Administration costs are also reduced since digital media can be purchased across publishers.